Risk Management
Circuit Breakers
The platform includes multiple circuit breaker categories that automatically pause or adjust trading when conditions become unfavorable:
| Category | What It Detects | Action |
|---|---|---|
| Spread-based | Market spreads become abnormally wide | Pause quoting on affected market |
| Volatility-based | Sudden spike in price volatility | Widen spreads, reduce size |
| API health | Exchange API errors or degraded performance | Pause trading until stable |
| Position-based | Inventory exceeds configured limits | Stop adding to position, work to reduce |
Position Limits
All position limits are fully user-configurable. You control your own risk:
| Setting | Description |
|---|---|
| Max Position Size | Per-market limit based on your capital |
| Max Total Exposure | All markets combined |
| Max Leverage | Account leverage cap (up to exchange maximum) |
| Max Order Size | Single order limit |
| Daily Loss Limit | Optional daily P&L floor |
Your money, your risk tolerance, your decision. There are no hard-coded defaults that override your settings.
Adverse Selection Protection
The system tracks fill quality to detect when orders are being picked off by informed traders. When adverse selection rates increase, the bot automatically:
- Widens spreads for protection
- Reduces order sizes
- Shifts quotes away from toxic flow